ADOPTION OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES AND THEIR IMPACT ON ORGANIZATIONAL PERFORMANCE OF TEA INDUSTRY SRI LANKA: WITH SPECIAL REFERENCE TO NUWARA ELIYA DISTRICT

Abstract

Rapid realization of changes in climate caused to increase environmental concerns and as a result of that it becomes a top most priority among organizations worldwide. In consequent, increased attention has been given to Green Supply Chain Management (GSCM) in recent years for mitigating negative impact of supply chains. GSCM is a technique for enhancing process and product performance while remaining compliant with environmental regulations. Hence, the purpose of this research is to identify impact of GSCM practices on organizational performance of tea industry in Nuwara Eliya district, Sri Lanka. A quantitative study was carried out for the study under explanatory research design covering Nuwara Eliya district as the research site. The population of the study was tea factories located in Nuwara Eliya district and it composed of 149 firms. Simple random sampling technique was used to select 108 respondents to collect primary data. A structured questionnaire was used to collect data and they were statistically analyzed using correlation and linear regression analysis. The findings of the study concluded that green supply chain management practices had a significant positive impact on organizational performance of tea industry Sri Lanka. Internal environment management, eco design, green purchasing and investment recovery show the significantly positive impact on organizational performance while it shows cooperation with customers had no substantial impact on organizational performance in tea industry. The overall findings concluded that green supply chain management practices adoption has a significantly positive impact on organizational performance of tea industry Sri Lanka. The study provided some insights on the types of GSCM procedures that a company should implement to enhance organizational performance. This research contributed to understand how GSCM practices and organizational performance are related to each other.